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16-02-2013, 12:01 PM
The Straits Times
www.straitstimes.com
Published on Feb 16, 2013
New private home sales rise 42%
But about 60% of deals were inked before curbs took effect on Jan 12
By Esther Teo Property Correspondent
NEW private home sales surged 42 per cent last month, defying the seventh round of cooling measures with buyers snapping up 2,013 homes.
This was well up from the 1,410 homes sold in December, according to data released by the Urban Redevelopment Authority (URA) yesterday.
About 60 per cent of these home sales, however, were inked before the curbs - which include higher stamp duties and tighter loan limits - took effect on Jan 12, a URA spokesman noted.
Including sales of executive condominiums, new home sales rose to 2,269 units last month.
Experts said the "surprisingly strong sales" last month do not necessarily mean that buyers have shrugged off the measures, and are not indicative of likely sales in the coming months.
Many buyers had rushed to make their purchases before the curbs hit with showflats opening late into the night on Jan 11. Some projects had also dangled various discounts and sweeteners to entice buyers, they added.
But with the new measures in place, sales volumes will likely "stabilise and moderate", said Mr Joseph Tan, CBRE's executive director of residential services.
"Given the Chinese New Year season, sales in February will likely slow down. Except for a number of developers who opened their showflats over the festive season, most developers steered clear of new launches."
The full impact of the measures is likely to be clearly seen only after the first quarter, added PropNex chief executive Mohamed Ismail. He does not expect new home sales to eclipse 20,000 units this year. They hit a record of 22,290 units last year.
Mr Ong Teck Hui, Jones Lang LaSalle's national director of research and consultancy, said that those unaffected by the curbs - first-timers and those without outstanding loans - still make up a significant part of the market.
"The market experience in January tells us that while cooling measures remain in place, projects with attractive locations and realistic pricing will still be able to draw buyers and achieve good take-up rates," he added.
Certain drivers for the housing market also remain. Said Savills Singapore research head Alan Cheong: "With liquidity aplenty and price expectations still positive, the power drivers for private residential properties are stronger than the retarding factors." He expects mass market home prices to rise by 10 per cent this year.
esthert@sph.com.sg
www.straitstimes.com
Published on Feb 16, 2013
New private home sales rise 42%
But about 60% of deals were inked before curbs took effect on Jan 12
By Esther Teo Property Correspondent
NEW private home sales surged 42 per cent last month, defying the seventh round of cooling measures with buyers snapping up 2,013 homes.
This was well up from the 1,410 homes sold in December, according to data released by the Urban Redevelopment Authority (URA) yesterday.
About 60 per cent of these home sales, however, were inked before the curbs - which include higher stamp duties and tighter loan limits - took effect on Jan 12, a URA spokesman noted.
Including sales of executive condominiums, new home sales rose to 2,269 units last month.
Experts said the "surprisingly strong sales" last month do not necessarily mean that buyers have shrugged off the measures, and are not indicative of likely sales in the coming months.
Many buyers had rushed to make their purchases before the curbs hit with showflats opening late into the night on Jan 11. Some projects had also dangled various discounts and sweeteners to entice buyers, they added.
But with the new measures in place, sales volumes will likely "stabilise and moderate", said Mr Joseph Tan, CBRE's executive director of residential services.
"Given the Chinese New Year season, sales in February will likely slow down. Except for a number of developers who opened their showflats over the festive season, most developers steered clear of new launches."
The full impact of the measures is likely to be clearly seen only after the first quarter, added PropNex chief executive Mohamed Ismail. He does not expect new home sales to eclipse 20,000 units this year. They hit a record of 22,290 units last year.
Mr Ong Teck Hui, Jones Lang LaSalle's national director of research and consultancy, said that those unaffected by the curbs - first-timers and those without outstanding loans - still make up a significant part of the market.
"The market experience in January tells us that while cooling measures remain in place, projects with attractive locations and realistic pricing will still be able to draw buyers and achieve good take-up rates," he added.
Certain drivers for the housing market also remain. Said Savills Singapore research head Alan Cheong: "With liquidity aplenty and price expectations still positive, the power drivers for private residential properties are stronger than the retarding factors." He expects mass market home prices to rise by 10 per cent this year.
esthert@sph.com.sg
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